TOBC LIMITED

Executive Summary

TOBC LIMITED exhibits high financial risk primarily due to substantial negative working capital and net liabilities within its first year of operation, raising concerns about solvency and liquidity. While compliance with filings and concentrated ownership are positives, the company's operational sustainability is uncertain without further capital or revenue evidence. Detailed examination of liabilities and funding plans is essential before considering investment.

TOBC LIMITED - Analysis Report

Company Number: 14687730

Analysis Date: 2025-07-29 14:43 UTC

1. Risk Rating: HIGH
   Justification: The company shows significant negative net current assets and net liabilities shortly after incorporation, indicating severe solvency and liquidity risks. The business has no employees and negligible fixed assets, further raising concerns about operational viability.

2. Key Concerns:

• Negative working capital: Current liabilities (£168,232) far exceed current assets (£37,544), resulting in a net current liability of £130,688, which suggests immediate liquidity pressure.
• Negative net assets/shareholders’ funds: Total net assets are negative at £105,639, reflecting accumulated losses or funding deficits that threaten solvency.
• No employees and minimal fixed assets: With zero employees and fixed assets of only £25,049, the company appears under-resourced to generate revenues or sustain operations, especially given the sizeable liabilities.

3. Positive Indicators:

• The company is compliant with filing deadlines for accounts and confirmation statements, reflecting good regulatory compliance to date.
• The sole director and 100% shareholder appear to have stable control, which may facilitate swift decision-making in restructuring or recapitalization.
• The company is newly incorporated (February 2023), so negative financials may reflect early-stage investment or startup losses rather than long-term decline.

4. Due Diligence Notes:

• Investigate the nature and maturity of the £168k current liabilities to assess imminent cash outflows and creditor pressure.
• Review cash flow projections, funding arrangements, and any shareholder loans or external financing plans to determine the ability to meet obligations.
• Clarify business model and revenue generation status given the lack of employees and small asset base, including customer contracts or operational milestones.
• Verify the background and financial capacity of the sole director/shareholder to provide additional capital if required.
• Confirm absence of any director disqualifications or adverse legal/regulatory actions not evident from available data.